Business
Trading Update, Contract Win and Notice of Results
Trading Update, Contract Win and Notice of Results.
About this update from Craneware Plc
[{"type":"text","content":"\n \nRNS Number : 3413D Craneware plc 06 July 2016 \n\nCraneware plc\n(\"Craneware\", \"the Group\" or the \"Company\")\n \nTrading Update, Significant Contract win and Notice of Results\n \n6 July 2016 - Craneware (AIM: CRW.L), the market leader in Value Cycle solutions for the US healthcare market, provides an update on trading for the year ended 30 June 2016.\n \nThe Board is pleased to confirm the Group's third consecutive year of record sales performance and a return to double digit growth at the revenue and adjusted EBITDA level. \n \nThe Group has seen greater than 60% growth in the value of 'New Sales' contracts signed of c$58m (2015 $35.9m) with the average new contract length being maintained at 5 years.\n \nIncluded in the year's sales success are two significant contracts. The first announced on 2 February 2016 was for a 50 hospital group in excess of $7.5m revenue over its five year life. In addition to this the Company is pleased to announce that it finished the year with a further multi-hospital group contract win. Starting in FY17, the contract is expected to deliver revenue greater than $8m during the next five years, as the hospital network rolls out multiple Craneware core value cycle solutions.\n \nIn accordance with the Company's revenue recognition policy, the majority of the revenue resulting from all sales will be recognised over future periods, adding to the Group's long term visibility of revenue under contract. Accordingly the Group expects to report an increase of 11% in revenues and 10% in adjusted EBITDA for the year ended 30 June 2016. \n \nOther key performance indicators continue to be positive. The Group continued to renew hospitals that were due for renewal in the year at an average of above 100% (by $ value) and customer retention continues to be significantly higher than the industry norm.\n \nStrong cash generation resulted in cash reserves in excess of $47m at 30 June 2016 (2015 $41.8m).\n \nKeith Neilson, CEO of Craneware plc commented, \"US Healthcare providers continue to address the challenges the new value based re-imbursement environment brings. We believe our continued sales growth demonstrates the strategic importance of Craneware and its Value Cycle solutions to them as they meet these challenges. The ongoin...